Tuesday, October 29, 2013

Proposal for Reforming Student Loan Repayment

Last week I released, through the Hamilton Project of the Brookings Institution, a proposal for reforming the repayment of student loans. This news item from my school's website sums up the event and press coverage:

Dynarski and Kreisman propose a single, income-based loan repayment system that automatically deducts payments from borrowers' paychecks to replace the current array of repayment options. Dynarski emphasized that the U.S. currently has "not a debt crisis, but a repayment crisis," stating:

"We have a repayment crisis because student loans are due when borrowers have the least capacity to pay. It often takes years for college graduates to settle into a steady, high-paying job that reflects the value of their education."